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Business17 July 2026 - 17:12

Naivas expands into Kamakis as retailers shift to neighbourhood malls

According to Knight Frank's latest Africa property report, demand is moving towards convenience-led retail formats

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by JACKTONE LAWI
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The new branch adds to the retailer's expansion drive in Nairobi's eastern corridor, where rapid residential development has created demand for convenience shopping close to residential estates. PHOTO/Handout

Naivas Supermarkets has opened a new outlet at Newgate Square in Kamakis, Ruiru, extending its footprint to more than 110 stores nationwide

The country’s largest retailer is increasingly targeting fast-growing residential suburbs instead of traditional regional malls in new expansion plan.

The new branch adds to the retailer's expansion drive in Nairobi's eastern corridor, where rapid residential development has created demand for convenience shopping close to residential estates.

Naivas Supermarkets Chief Executive Officer, Andreas von Paleske said the opening concided with the store’s 36th year of operation in the country.

“Kamakis is one of Kenya's fastest-growing residential and commercial corridors, and we are delighted to become part of its everyday life. As Kenya grows, we will continue investing in communities, ensuring more families have a Naivas nearby whenever they need us," said von Paleske.

The expansion comes as Kenya's retail property market undergoes a shift, with supermarket chains increasingly favouring neighbourhood shopping centres over large destination malls.

According to Knight Frank's latest Africa property report, demand is moving towards convenience-led retail formats, including neighbourhood malls, fuel station retail and mixed-use developments, as consumers seek shorter shopping trips and retailers follow population growth into suburban areas.

The property consultant says prime regional malls are approaching saturation, while neighbourhood centres continue attracting new investment. Average footfall at retail centres rose by about 15 per cent in 2025, although shoppers spent less per visit as households remained price-sensitive.

Knight Frank also notes that Kenya's retail pipeline is increasingly concentrated in community shopping centres serving middle-income neighbourhoods, with retailers adjusting expansion plans to changing consumer spending patterns and growing demand for convenience shopping.

Kamakis has emerged as one of the fastest-growing residential corridors on the outskirts of Nairobi, fuelled by housing developments along the Eastern Bypass and proximity to the Thika Superhighway.

The location has attracted developers of mixed-use projects that combine retail, offices and residential units, making it an attractive destination for supermarket chains seeking catchment areas with rising populations.

The opening continues an expansion race among Kenya's leading supermarket chains, with retailers competing for space in emerging residential nodes as traditional shopping malls mature.

The strategy reflects broader changes in consumer behaviour, where shoppers increasingly prefer neighbourhood centres that reduce travel time and offer access to supermarkets, pharmacies, restaurants and other essential services in a single location.

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